Stocks to buy: The midcap companies reported mixed earnings performance during the second quarter of FY26, with divergences driven largely by sectoral dynamics and company-specific execution cycles.
The broader midcap landscape continues to benefit from structural demand resiliency across industrial, engineering, packaging, utilities, and export-led themes. Companies are investing in capacity expansion, margin optimisation, and product diversification to build sustainable growth runways.
According to Axis Securities, management commentaries across the board remain positive on H2FY26 execution, supported by stronger order inflow, improving domestic liquidity conditions, and an improving global demand environment in select pockets.
With the combination of stabilising sector indicators, improving utilisation trends, and long-term structural enablers, Axis Securities has identified six midcap stocks to buy that offer compelling risk-reward opportunities.
“To ensure your portfolio remains well-positioned for both near-term cyclical recovery and medium-term compounding, we strongly recommend taking timely action on the ideas outlined below,” said the brokerage firm.
The top conviction ideas by Axis Securities in the chemicals and midcap space include Aarti Industries, Pitti Engineering, VA Tech Wabag, Kirloskar Brothers, Gravita India and Mold-Tek Packaging.
Stocks to buy
Aarti Industries | Buy | Target Price: ₹530
Axis Securities continues to value Aarti Industries stock at 23x Sept’27E EPS, with a target price of ₹530 per share. Accordingly, it recommends a ‘Buy’ rating on Aarti Industries shares.
Pitti Engineering | Buy | Target Price: ₹1,335
The brokerage firm values the stock at 22x its Sept’27E EPS and has Pitti Engineering share price target of ₹1,335. It believes that the current valuations appear attractive and has a ‘Buy’ rating on the stock.
VA Tech Wabag | Buy | Target Price: ₹1,930
The order book of VA Tech Wabag remains healthy. Axis Securities has a positive long-term view on the stock, and continues to value it at 21x Sept’27E. It recommends a ‘Buy’ call with VA Tech Wabag share price target of ₹1,930 apiece.
Kirloskar Brothers | Buy | Target Price: ₹2,330
With sustained demand from key end markets and a robust order book, Kirloskar Brothers remains on track to achieve double-digit revenue growth in the medium term. The current order book provides strong revenue visibility, Axis Securities said.
Accordingly, it has a ‘Buy’ rating on the stock and a target price of ₹2,330 per share.
Gravita India | Buy | Target Price ₹2,600
Gravita India shares are valued at 32x FY27E EPS, with a target price of ₹2,600 apiece. The brokerage has recommended a ‘Buy’ rating on the stock.
Mold-Tek Packaging | Buy | Target Price: ₹850
Axis Securities values Mold-Tek Packaging stock at 20x Sept’27E EPS, with a target price of ₹850 apiece, and recommends a ‘Buy’ call on the stock.